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Kraft Heinz to Acquire Brazil-Based Hemmer
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Kraft Heinz to Acquire Brazil-Based Hemmer

The Kraft Heinz Company (KHC) has agreed to acquire Companhia Hemmer Indústria e Comércio, a Brazil-based producer and seller of several types of picked and preserved food, condiments, olive oil and beverages.

The deal is subject to approval by CADE (Brazil’s Administrative Council for Economic Defense). (See Kraft Heinz stock charts on TipRanks)

With this deal, Kraft Heinz seeks to build presence in emerging markets and progress in its strategy of growing its International Taste Elevation product platform. Meanwhile, Hemmer will benefit from Kraft Heinz’s distribution network and go-to-market model, including the growing foodservice channel in Brazil.

The International Zone President at Kraft Heinz, Rafael Oliveira, said, “This acquisition offers us a valuable opportunity to accelerate our international growth strategy centered around Taste Elevation – our portfolio of high-quality products that enhance the taste of food.”

On September 21, Morgan Stanley analyst Pamela Kaufman initiated coverage of Kraft Heinz with a Hold rating and lowered the price target to $37 from $38. The new price target implies 1.9% upside potential from current level.

Kaufman sees the potential for greater than anticipated margin pressure from elevated inflation, decelerating volumes and consumer down trading.

Based on 1 Buy, 6 Holds and 1 Sell, the stock has a Hold consensus rating. The average Kraft Heinz price target of $39.25 implies 8.1% upside potential from current levels. Shares have gained 25.9% over the past year.

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